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The big German economic problem in the 1920s was hyperinflation, which peaked in 1923. Following World War I, Germany faced massive reparations payments imposed by the Treaty of Versailles, leading to excessive printing of money to meet obligations. This devalued the currency, causing prices to skyrocket and savings to become worthless. The economic instability contributed to social unrest and set the stage for the rise of extremist political movements.

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